Insurance Bad Faith

While types of insurance vary widely, their primary goal is to allocate the risks of a loss from the individual to a great number of people. Each individual pays a “premium” into a pool from which losses are paid out. The premium is not returnable regardless of whether the particular individual suffers the loss or not. Thus, when a building burns down, the loss is spread to the people contributing to the pool. In general, insurance companies are the safe-keepers of the premiums.

Because of its importance in maintaining economic stability, the government and the courts use a heavy hand in ensuring these companies are regulated and fair to the consumer.


Insurance Bad Faith Investigations


02/25/2013

Force-Placed Insurance Lawsuits

force-placed-flood-insurance-lawsuit

CLASS ACTIONS CONTINUE TO BE FILED FOR FRAUDULENT FORCE-PLACED INSURANCE Over the past year, state and other governmental agencies have uncovered a long standing fraudulent practice where lending institutions such as Banks and mortgage companies were receiving kickbacks from insurance carriers in order to be awarded force-placed insurance contracts. These insurance policies are placed on a home by the lender when a property owner’s own insurance is cancelled, lapsed or is deemed insufficient and the homeowner fails to secure a replacement... Read More